Practice Assessment 1 Task 1b.
gabriellenlewis
AAT Student Posts: 129
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Best Answers

Hi Gabrielle,
Answers are 21000 F 181000 V126000
36000 F193000 V205000
Variable for 36000 units worked out as 25000 x £6= 150,000 11000 x £5=55000...150000+55000=205000.
Hope this helps.
Emily
5 
That’s the variable figure for units produced under 25000, after that the variable figure reduces to £5/unit. You can work this out using the high low method :)5
Answers

> @EmilyRose said:
> Hi Gabrielle,
>
> Answers are 21000 F 181000 V126000
> 36000 F193000 V205000
>
> Variable for 36000 units worked out as 25000 x £6= 150,000 11000 x £5=55000...150000+55000=205000.
>
> Hope this helps.
>
> Emily
Thanks, but where does the £6 come from?0 
Variable cost per unit Emily.
As both production levels shown are under the 30,000, you can use the high low method to find the vcpu.
2300019000=4900
324400295000=29400
Divide 29400 by 4900 to give you 6
0 
EmilyRose said:
Hi Gabrielle,
Answers are 21000 F 181000 V126000
36000 F193000 V205000
Variable for 36000 units worked out as 25000 x £6= 150,000 11000 x £5=55000...150000+55000=205000.
Hope this helps.
Emily
The fixed overheads for 21000 should be 169000. The 12000 increase only happens after more than 30000 are produced?
0 
kevc90 said:EmilyRose said:
Hi Gabrielle,
Answers are 21000 F 181000 V126000
36000 F193000 V205000
Variable for 36000 units worked out as 25000 x £6= 150,000 11000 x £5=55000...150000+55000=205000.
Hope this helps.
Emily
The fixed overheads for 21000 should be 169000. The £12000 increase only happens after more than 30000 are produced?
I have fixed overheads at £181,000 as they are for 19000 units and 23000 units, I only added the £12,000 increase to the 36000 units.. could be wrong though..
0 
EmilyRose said:kevc90 said:EmilyRose said:
Hi Gabrielle,
Answers are 21000 F 181000 V126000
36000 F193000 V205000
Variable for 36000 units worked out as 25000 x £6= 150,000 11000 x £5=55000...150000+55000=205000.
Hope this helps.
Emily
The fixed overheads for 21000 should be 169000. The £12000 increase only happens after more than 30000 are produced?
I have fixed overheads at £181,000 as they are for 19000 units and 23000 units, I only added the £12,000 increase to the 36000 units.. could be wrong though..
No sorry you are right. I was working it out at 21000 units as you say. Not liking this unit!!0 
I loooove High Low method, so straight forward
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